What Does the Market Analysis Reveal About the District Cooling Market Growth?
District cooling market size has witnessed a strong growth from $17.98 billion in 2024 to $20.13 billion in 2025, recording a compound annual growth rate (CAGR) of 11.9%. The robust expansion during the historic period accredits factors like escalating demand for cooling systems in high-temperature regions, growing urbanization, surging disposable income, and the development of large-scale residential and commercial structures.
In addition, the market is projected to witness a significant surge to $31.76 billion in 2029 at a CAGR of 12.1%. This hefty growth during the forecast period is attributed to the rising need for efficient cooling systems, rapid construction activities, surging infrastructure development investments by developing nations, increasing global population and urbanization, and growing emphasis on sustainability. The future trends encompass the use of advanced data analytics for optimizing cooling system efficiency and the adoption of smart grid technologies in district cooling networks.
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What is Driving the Growth of the District Cooling Market?
District cooling market growth is significantly driven by the rising focus on the adoption of sustainable energy. Sustainable district cooling provides sustainable cooling and improves the local environment by reducing noise and increasing the energy supply’s security. The global renewable capacity additions are also set to grow by 107 gigawatts (GW)—the largest absolute increase ever—to more than 440 GW, which propels the growth of the district cooling market further.
What are the Segments Included in the District Cooling Market?
The district cooling market report covers the following segments:
1) By Production Technique: Free Cooling, Absorption Cooling, Electric Chillers, Other Production Techniques
2) By Function: Stationary Cooling, Transport Cooling
3) By Application: Commercial, Residential, Industrial
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Who are the Key Players in the District Cooling Market?
The district cooling market includes major players like Ramboll Group A/S, Fortum Corporation, Emirates District Cooling LLC, Engie SA, National Central Cooling Company PJSC, Veolia Environnement SA, Empower India Ltd., Qatar District Cooling Company, Keppel DHCS Pte Ltd., ADC Energy Systems LLC, Stellar Energy Systems Inc., Shinryo Corporation, Cetetherm AB, Logstor AS, Alfa Laval AB, Wien Energie Vertrieb GmbH & Co. KG, Danfoss Group, Marafeq Qatar, Emirates Central Cooling Systems Corp., DC PRO Engineering, Johnson Controls International plc, Siemens AG, Trane Technologies plc, Carrier Global Corporation, Hitachi Ltd., LG Electronics Inc., Daikin Industries Ltd., GEA Group AG.
What are the Emerging Trends in the District Cooling Market?
Technological innovations are sweeping the district cooling systems market. Key companies are introducing technological innovations to reinforce their position. For instance, Honeywell, a US-based performance materials and technology company, launched Solstice E-Cooling, a revolutionary platform of liquid heat transfer agents that cool high-performance electronics more efficiently compared to conventional air and water techniques.
Which Region Holds the Largest Share in the District Cooling Market?
In 2024, the Middle East held the largest share in the district cooling market. The district cooling market report covers regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
What Does The District Cooling Market Report 2025 Offer?
The District Cooling Market research report from The Business Research Company provides global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities. The district cooling system (DCS) refers to a system distributing cooling capacity in the form of chilled water or another medium from a central source to many buildings via a network of subterranean pipes for indoor cooling purposes in industrial, commercial and residential buildings.
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